Credit, Debt & Lending Financial Terms & Definitions

34 terms in this topic

This category includes vocabulary for loans, credit scores, interest rates, debt instruments, lending institutions, and repayment structures. It helps users understand how credit works, how debt is managed, and the roles of borrowers and lenders in financial transactions.

A

APR

APR stands for Annual Percentage Rate. It is the total yearly cost of borrowing money, expressed as a percentage. Unlike…

Full Definition
A

APR vs. APY

APR (Annual Percentage Rate) and APY (Annual Percentage Yield) are two critical measures used in finance to represent interest rates.…

Full Definition
C

Charge-off

A charge-off is a formal declaration by a creditor, typically a bank, credit card issuer, or lender, that a debt…

Full Definition
C

Collections

Collections refers to the process that debt lenders and creditors use to recover overdue payments from borrowers who have failed…

Full Definition
C

Cosigner

A cosigner is an individual who agrees to take joint responsibility for a loan or other debt obligation alongside the…

Full Definition
C

Credit report

A credit report is a detailed record of an individual’s credit history, compiled by consumer reporting agencies (often called credit…

Full Definition
APR APR stands for Annual Percentage Rate. It is the total yearly cost of borrowing money, expressed as a… APR vs. APY APR (Annual Percentage Rate) and APY (Annual Percentage Yield) are two critical measures used in finance to represent… Bankruptcy – Chapter 11 Bankruptcy – Chapter 11 is a legal process for businesses (and sometimes individuals with high levels of debt)… Bankruptcy – Chapter 13 Bankruptcy – Chapter 13 is a legal process in the United States that allows individuals with a regular… Bankruptcy – Chapter 7 Bankruptcy – Chapter 7, often called liquidation bankruptcy, is a legal process in the United States that helps… Charge-off A charge-off is a formal declaration by a creditor, typically a bank, credit card issuer, or lender, that… Collateral Collateral is an asset, such as a house, car, or cash, that a borrower pledges to a lender… Collections Collections refers to the process that debt lenders and creditors use to recover overdue payments from borrowers who… Cosigner A cosigner is an individual who agrees to take joint responsibility for a loan or other debt obligation… Credit rating – Fitch A Fitch credit rating is an opinion from the Fitch Ratings agency about the creditworthiness of a borrower,… Credit rating – S&P A credit rating from S&P (Standard & Poor’s) is an opinion about the creditworthiness of a borrower, such… Credit report A credit report is a detailed record of an individual’s credit history, compiled by consumer reporting agencies (often…